If you cheat, money will follow

From June 6th to June 20nd, the market will be closed during the Dragon Boat Festival.

Over the past week, the stock market has fallen 13%.

Experts have said that the sharp drop was a short-term drop caused by policy regulation.

A short-term decline will not affect the market fundamentals, and it must go up when it needs to.

The chairman of the company also stood up and pointed out that the current stock market is facing a rare investment opportunity in ten years.

Therefore, investors still have confidence in the market.

More investors are investing new funds into the market, which is called covering positions and reducing costs, and is a technical activity.

But the really big players are already taking action.

A Net: Shareholders reduced their holdings by a total of 749.48 million shares through block transactions, accounting for 3.9% of the company’s total share capital. The reduction has been completed.

Company B: The chairman reduced his holdings of the company's shares by a total of 3800 million shares through block transactions, accounting for 1.38% of the company's total shares.

Group C: The controlling shareholder acting in concert plans to liquidate and reduce its holdings by 8.08%. The reduction plan has been implemented and the persons acting in concert will no longer hold shares in the company.

Company D: The original controlling shareholder plans to reduce its holdings by 2%.

Company E: The company's major shareholder plans to reduce its holdings by up to 14.42% of its shares

…………

Company Z: Two natural person shareholders disclosed their shareholding reduction plan...

On June 6 and 23, the index rebounded on the two trading days with the firm attitude of investors and the support of funds to cover positions.

On June 6, Big A closed at 23 points, up 4577.94%;

On June 6, Big A closed at 24 points, up 4690.15%.

However, on Thursday, June 6th.

The two markets opened higher and then plunged at the end of the session.

Big A closed at 4527.78 points, down 3.64%;

The GEM fell 5.23%.

Friday, September 6st.

It’s Black Friday again.

After the opening, Big A opened lower and rose slightly, then encountered a large number of selling and fluctuated down.

At the close, it plummeted 7.4% to close at 4192.87 points, a loss of 344 points;

Pengcheng Index fell 8.24%;

The GEM plunged 8.9%, almost triggering the daily limit.

It is rare for a sector to trigger its lower limit.

On this trading day, 2581 stocks in Big A and 2049 stocks in Penggu fell to their limit.

Big A’s market value has evaporated by 3.7 trillion.

Trading ends on this day.

Investors finally realized something was wrong.

In just two weeks, the market fell by more than 1000 points.

The decline reached 20%, and the market value evaporated by 10 trillion...

This is not a correction or a shock, but a crisis.

The leeks are faced with a choice: should they cut off their flesh and exit the game, or should they stand guard at a high position?

Then, regulators took action.

Saturday, October 6.

The central government took action and began to lower the accuracy:

Starting from June 6, the loan and deposit reserve ratios of financial institutions will be lowered to lower corporate financing rates.

The former was lowered by 0.25 percentage points to 4.85%;

The latter was lowered by 0.25 percentage points to 2%.

Normally, the loan and deposit reserve ratios would be lowered, which is really good news.

The market is bound to "become a prosperous country."

And now...the market is voting with its feet.

Monday, April 6th.

The big A and Peng stocks opened higher and moved lower.

The huge amount of selling formed the top trend of huge waves, resulting in huge market shocks.

On that day, a total of 1488 stocks in the two cities fell below the limit.

Big A fell nearly 4000 points to the bull-bear dividing line, closing at 4053.03 points.

Faced with this situation, the village chief urgently released a lot of good news to stimulate the market and stabilize market sentiment.

On Tuesday, June 6, the market gave the village chief face.

Big A rebounded, recording the largest increase since 2009, rising 5.53% to close at 4277.22 points;

The Pengcheng Index rose 5.69%;

The GEM rose 6.28%.

However, it turns out that this is the opponent's rhythm control.

The opponent has been preparing for several years and has accumulated a large amount of chips. It cannot be appeased and dealt with by simply lowering the reserve requirement.

After two weeks of deliberation and testing, the opponent's general attack began.

Wednesday, September 7th.

Big A continued to dive in late trading, falling 5.23% to close at 4053.7%.

941 stocks in the two cities fell by the limit.

Thursday, March 7th.

The two cities ignored a series of favorable policies previously issued by regulators and continued to fall sharply.

Big A once fell below 3800 points, and then relied on the forced capital injection of two barrels of oil to pull it up, as well as the protection of the brokerage, and the decline narrowed.

Big A fell 3.48% to close at 3912 points;

The GEM fell 3.99% to close at 2690 points.

A total of 1525 stocks in the two cities fell below the limit.

Friday, September 7st.

Big A opened lower, turned red at midday, and dived at the end of the day;

It plummeted 5.77% and closed at 3686.92%.

从6月15日5178.19点，到7月3日3686点，短短14个交易日……

Big A fell 28.4%, and its market value evaporated by 14.2 trillion yuan.

Pengcheng Index fell 32.34%;

The GEM fell 33.19%.

The declines in both cities were the largest since 1992.

At this point, the entire market entered a collapse channel, and uncontrollable pessimism was everywhere.

From institutions, to companies, to retail investors, especially some retail investors, there are only two strategies that can be thought of:

One is to run and the other is to jump.

At this time, some media thought of how wise it was to have Renaissance Capital sell off its stocks and Dingfeng flee after the New Year holiday.

The performance of the stock market in the past two weeks can no longer be described by words such as correction, shock, decline, and plunge...

Instead, it should be described as a disaster, and it is a disaster of historical proportion.

When disaster strikes, it means not only broken hearts and evaporated wealth, but also life...

Afterwards, some professionals analyzed that this disaster was attributed to human greed, rampant capital allocation and disordered supervision.

However, the human factors of internal and external integration were not taken into account, perhaps intentionally or unintentionally.

Of course, human greed, rampant capital allocation and disordered supervision are the main reasons, but there is no way to explain:

First, why overseas hot money does not enter the market through formal channels...

However, it happened to use the HOMS platform to enter the market latently for several years. The amount of funds that can be traced is as high as 5000 billion yuan.

Second, before the big sale on June 6th...

Index futures such as CSI 500 and A300 have accumulated huge amounts of short orders.

Among them, only one institution has a short order of 72 billion.

Third, traces of quantitative trading are found in both the spot stock market and the futures index market.

Ordinary people trade a stock in 5-10 seconds;

Quantitative trading uses mathematical models and computer technology to conduct 1 transactions and control hundreds or thousands of stocks within one second.

Frequently placing and canceling orders can guide market sentiment and cause market panic.

Precisely because of the participation of quantitative trading, hundreds of millions of funds can be coordinated and the rhythm can be accurately controlled.

Note that currently domestic financial institutions do not have relevant talents, let alone have implemented quantitative transactions.

In the financial market, any major fluctuation or shock is not simply market behavior.

You can definitely find the answer in politics.

On July 7, after the stock market closed.

Zheng Peng took the elevator straight to the top floor and came to Chang Le's office.

Zheng Peng was in a bad state, his eyelids were lying softly, as if he hadn't slept well.

Chang Le saw Zheng Peng coming in, put down the mouse in his hand, and asked curiously:

"Did you drink again last night?"

"No, a young man downstairs hanged himself." Zheng Peng sat on the chair opposite Chang Le, shaking his head and said:

"I moved with my wife and children overnight..."

"What's going on?" Chang Le asked in surprise.

"What else could happen..." Zheng Peng explained:

"Last year, the market was very good and the market soared. This guy borrowed millions from someone and invested them all in the stock market. He wanted to achieve financial freedom in one fell swoop. In addition to losing all his money in the past two weeks, he also lost more than 1000 million."

"How much leverage did this kid increase? Can the stock market lose so much?" Chang Le took a sip of tea and smacked his lips.

"I heard it's 10 times. Damn, he hugged our Zhize yesterday morning. Xiaojie was so scared that she couldn't sleep all night..." When Zheng Peng said this, his eyes drifted out of the window casually, and he was stunned for a moment.